Ethereum Price Struggles Amid $3,700 Resistance; Whales Continue Aggressive Accumulation

Ethereum’s market dynamics have recently posed challenges, with its price struggling to maintain a position above $3,720 amidst renewed selling pressures. Despite these hurdles, there’s a noticeable influx of interest from both whales and institutional investors, cementing a foundation of confidence among long-term holders. Analyst Ted has pointed out that for Ethereum to set its sights on breaking higher resistance levels, it’s crucial for the cryptocurrency to first stabilize around its current highs. Achieving this would also be a key determinant for Ethereum to potentially reach the $4,100 mark by year’s end. However, this ambitious target requires a firm defense of lower supports to solidify a robust market footing.

Focusing on Ethereum’s current trading zones, the cryptocurrency finds itself wrestling with significant liquidity territories. Presently valued at approximately $3,445, Ethereum has faced challenges breaking past the $3,720 ceiling. Analyst Ted has elaborated that the resistance in the $4,010 to $4,110 range remains pivotal, drawing substantial liquidity. There’s a strong demand near the $3,410 mark, which acts as a bedrock during pullbacks. Should Ethereum falter below this level, the next critical support forecast is around $3,230, which may entice renewed purchasing momentum. A successful resurgence above $3,720 could signal bolstered market confidence, setting the stage for Ethereum to approach the $4,010 level again.

In an alternative analysis, Ethereum appears to be consolidating within a symmetrical triangle pattern. This technical formation suggests a market poised for a significant breakout, marking a balance of power between buyers and sellers as market volatility diminishes. The Directional Movement Index (DMI) further corroborates a bearish scenario with +DI at 12.5 and -DI at 31, evidencing seller dominance. Moreover, with the Average Directional Index (ADX) standing at 31.5, it underscores a prevailing strong trend, suggesting the bearish momentum might prevail before any recovery. This positions Ethereum to potentially revisit the $3,280 support area. Historically, this level has been a zone of renewed buyer confidence and could act as a springboard for liquidity reset and potential upward momentum.

Additional support for Ethereum’s market prognosis comes from influential market players. Both whales and institutional entities have ramped up their accumulation efforts as Ethereum trades below major resistance levels. Notably, Lookonchain has uncovered that a specific whale, previously known for borrowing 66,000 ETH to short, has transitioned into a buying spree during recent market dips. This particular whale recently withdrew an additional 61,000 ETH, valued at approximately $215 million, from Binance, reinforcing its commitment to accumulating the cryptocurrency. Since early November, this entity has reportedly amassed 395,500 ETH, worth nearly $1.39 billion, indicating substantial investor confidence amid volatile conditions.

Meanwhile, institutional players such as BitMine have also bolstered their positions, now holding nearly 3.0% of the total Ethereum supply after acquiring around 111,000 ETH during the recent price pullback. The institutional interest may heighten as a result of new U.S. Treasury and IRS regulations, which now allow crypto ETFs to stake digital assets. This regulatory clarity provides funds with a structured pathway to earn staking rewards, rendering Ethereum increasingly attractive to regulated market participants. With continued accumulation by significant market players and emerging regulatory support, Ethereum has a promising foundation to potentially reach $4,010 by the year’s conclusion.

Ethereum’s immediate market landscape is characterized by a tug of war between steadfast support and formidable resistance. Nevertheless, the ongoing accumulation by both whales and institutional investors furnishes a layer of market stability during short-term fluctuations. Holding onto the $3,410 level could maintain a bullish market structure, thereby preserving prospects for a price recovery. A decisive shift above $3,720 would amplify investor confidence, potentially propelling Ethereum toward the $4,010 target as we draw closer to the year’s end.